VC Funding for Smart Grid Companies Declines in Q1 of 2019: Report

In first quarter of 2019, 32 investors took part in smart grid VC funding rounds, with majority of funds raised by smart charging companies

The venture capital (VC) funding for smart grid companies recorded a decline in the first quarter of 2019 with US$ 32 million raised in 15 deals as compared to US$ 266 million in nine deals in previous quarter, according to a latest report by Mercom Capital Group, a global clean energy communications and consulting firm.

In the first quarter of 2018, US$ 75 million was raised by smart grid companies in seven deals. The decline in funding was mainly due to ChargePoint’s US$ 240 million deal in the fourth quarter, the report says.

In first quarter of 2019, 32 investors took part in smart grid VC funding rounds, with majority of funds raised by smart charging companies.

Overall corporate funding in smart grid stood at US$ 32 million in 16 deals January-March period of 2019 as compared to US$ 272 million in 10 deals in October-December period of 2018. The smart grid companies raised US$ 1.3 billion in nine deals in January-March quarter of 2018.

Top VC funded companies

The top VC funded company is Driivz, which raised US$ 12 million from Inven Capital, Centrica, CEZ’s Group’s Investment Fund and Ombu Group.

The other major VC funded companies include EverCharge, which secured US$ 6 million, followed by Catalyze which raised US$ 5 million from Innosphere Fund and Prisma Energy, Logical Buildings raised US$ 4 million and SensorFlow secured US$ 3 million.

In Q1 2019, US$ 1 million dollars was raised in one debt financing deal, as compared to US$ 6 million raised in one deal in the previous quarter. In Q1 last year, US$ 1.25 billion was raised in two debt financing deals.

In the first quarter of this year, nine merger and acquisitions (M&A) transactions were announced, as compared to three undisclosed transactions in the fourth quarter of 2018. There was one undisclosed M&A transaction in the first quarter of 2018.

Globally, total of US$ 210 million was raised by battery storage, smart grid, and energy efficiency companies in Q1 2019, witnessing a drop as compared to US$ 472 million raised in Q1 2018.